Can You Ask a Lender to Remove Late Payments?

Question from dd: Can you ask a lender to remove late payments?

Yes, you can ask a lender to remove late payments from your credit report. This process is known as “goodwill adjustment” or “goodwill deletion”. However, it’s important to note that lenders are not obligated to agree to your request.

Understanding Goodwill Adjustments

A goodwill adjustment is a request made to a lender or creditor to remove a late payment record from your credit report. This is typically done as a gesture of goodwill, hence the name, and is often used by individuals who have had a good payment history but have made a few late payments due to unforeseen circumstances.

How to Request a Goodwill Adjustment

Here are some steps you can take to request a goodwill adjustment:

  • Identify the late payment: You need to know which payments were reported late and to which credit bureau. You can find this information on your credit report.
  • Contact the lender: Reach out to your lender and explain your situation. Be honest about why the payment was late and show that you have taken steps to ensure it won’t happen again.
  • Write a goodwill letter: A goodwill letter is a formal request to a lender asking them to remove a late payment from your credit report. It should include your account information, the date of the late payment, and the reason why the payment was late.

Factors That Influence a Lender’s Decision

Whether a lender agrees to remove a late payment from your credit report depends on several factors:

  • Your payment history: If you have a history of making payments on time and this was a one-time occurrence, the lender might be more inclined to remove the late payment.
  • The lender’s policies: Some lenders may have policies against removing late payments, while others might be more flexible.
  • Your relationship with the lender: If you have a long-standing, positive relationship with the lender, they might be more willing to accommodate your request.

According to the Consumer Financial Protection Bureau, it’s important to keep in mind that even if a lender agrees to remove a late payment, it doesn’t guarantee that your credit score will immediately improve. It can take time for your credit score to reflect these changes.

In conclusion, while it’s possible to ask a lender to remove late payments, it’s not a guaranteed solution. The best way to maintain a good credit score is to make your payments on time, every time. If you’re struggling with payments, consider seeking advice from a financial advisor or looking into options like installment loans.

Goodwill template to Remove Late Payments

[Your Name]
[Your Address]
[City, State, ZIP]
[Email Address]
[Phone Number]
[Today’s Date]

[Bank or Lender’s Name]
[Bank or Lender’s Address]
[City, State, ZIP]

To Whom It May Concern,

Re: Account Number [Your Account Number]

I hope this letter finds you well. I am writing to you today regarding my account with [Bank or Lender’s Name] to humbly request the removal of the late payment(s) reported on [Date(s) of Late Payment(s)].

I understand the importance of timely payments and the impact that late payments can have on my credit score. I take full responsibility for the oversight and assure you that this was an isolated incident. The late payment(s) occurred due to [Explain the reason for the late payment, such as unexpected medical expenses, job loss, etc.]. I have since taken steps to ensure that this will not happen again, including [List the steps you’ve taken, such as setting up automatic payments].

I have been a loyal customer of [Bank or Lender’s Name] for [Number of Years] years and have otherwise maintained a good payment history. I kindly ask you to consider the circumstances that led to the late payment(s) and to remove the negative entry as a goodwill gesture.

I understand that you are not obligated to fulfill this request, but I hope you will consider it as a testament to my commitment to maintaining a strong financial standing and a long-term relationship with [Bank or Lender’s Name].

Thank you for taking the time to read my letter and for considering my request. I look forward to resolving this matter amicably and to continuing my relationship with [Bank or Lender’s Name].

[Your Name]

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